While Wall Street sometimes seems to believe that only the top 1% deserve the best investments, Brad Reifler, founder and CEO of Forefront Capital, recently shared his investing advice for the masses in a press release on Reuters.com. Brad outlined his advice in five tips for investors of any level who are looking for a safe investment with satisfying returns.
1. Be careful how you invest your money. It’s important to consider risks as well as charges and expenses. Take a careful inventory of your total assets and identify your goals.
2. Be concerned about the safety of your money.
3. Do not put everything in the stock market. Diversify.
4. Develop a relationship with your fund manager so that you know and trust the person who ultimately manages your money.
5. Recognize why you are investing. Consider the objective of each investment. Be conscious of how much you invest, and if you see a particular investment working, add to it.
Reifler cited recent financial experiences on Twitter that disturbed him so greatly as to prompt him to refocus and shift the entire direction of his firm. That shift in focus, he says, is taking him away from Wall Street and towards the middle class.
Since making that shift he has developed a fund specifically for people like his 80 year old father in law who owns an RV repair shop and does not have access to the investment products that are available to accredited investors. Diversification is key to investment success and Reifler’s goal is to make more investment opportunities available to the smaller investor.
About.me showed that Reifler notes how the Securities and Exchange Commission requires Accredited Investors be either a corporation or an individual with a networth of over one million dollars, excluding the primary residence, or having an income over $200,000 or joint income over $300,000 with a spouse. These standards were originally designed to protect shareholders from risky investments, Reifler states, but the past 30 years have produced such an increase in knowledge and oversight that the standards now serve mostly to shield smaller investors from the most lucrative investment opportunities.
“Through the power of compound returns,” the article quotes Reifler, “if the 99 percenters had a better option to invest, they could potentially watch a small investment grow into a substantial retirement account.”
“Unlike Wall Street,” Reifler continued, “we want to be a firm for the people.”